Connecting, Cultivating, Commercializing

Transcription

1 Connecting, Cultivating, Commercializing Steve Hahn Research Fellow Ventures and Business Development The Dow Chemical Company Berkeley Post Doc Association University of California-Berkeley September 10, 2012 Dow.com

2 Outline Introduction to Dow Innovation at Dow Ventures and Business Development Research and Development Megatrends Opportunity Analysis Sustainability Recent Partnerships New Products and Projects Questions and Answers 2

3 Who We Are Founded in 1897 by Herbert H. Dow in Midland, Michigan A science and technology company with annual sales of US$60 billion Supplies a broad range of products and services to customers in 160 countries Production facilities in 36 countries with 52,000 employees worldwide Industry-leading portfolio of specialty chemical, advanced materials, agrosciences and plastics businesses

4 Global Reach Approximately 52,000 employees are working in manufacturing plants, business centers, sales offices and research & development facilities located in more than 50 countries around the world.

5 Dow s Operating Segments Advanced Materials Agricultural Sciences Performance Materials Electronic & Functional Materials Coatings & Infrastructure Solutions Agricultural Sciences Performance Materials Dow Electronic Materials - Semiconductor Tech - Interconnect Tech - Display Technologies - Growth Technologies Functional Materials - Dow Wolff Cellulosics - Dow Home & Personal Care - Dow Microbial Control - Performance Additives JV: Dow Corning Dow Building & Construction - Dow Building Solutions - Dow Construction Chemicals - Dow Solar Solutions Dow Coating Materials - Architectural Coatings - Industrial Coatings Dow Water & Process Solutions Performance Monomers JV: Dow Corning Dow AgroSciences - Agricultural Chemicals - Seeds, Traits, & Oils AgroFresh Amines Automotive Systems Chlorinated Organics Dow Formulated Systems Dow Oil & Gas Dow Plastics Additives Epoxy Oxygenated Solvents Polyurethanes Polyglycols, Surfactants and Fluids Dow Haltermann SAFECHEM JV: BASF Dow HPPO B.V. JV: Saudi Acrylic Monomers Company LLC (SAMCO) JV: SCG-Dow JV: AKSA-Dow Performance Plastics Performance Plastics Performance Plastics Feedstocks & Energy Feedstocks & Energy Polyethylene JV: EQUATE Plastics Licensing JV: Equipolymers & Catalyst JV: The Kuwait Olefins Company K.S.C. Dow Packaging & JV: SCG-Dow Converting JV: Univation Technologies Dow Elastomers Dow Electrical & Telecommunications Chlor-Alkali/Chlor-Vinyl Energy Ethylene Oxide/Ethylene Glycol JV: EQUATE JV: MEGlobal Hydrocarbons (Olefins, Aromatics, Aromatic Derivatives) JV: Compañia Mega JV: SCG-Dow JV: The Kuwait Olefins Company K.S.C 5 5

6 Dow Business Segments Advanced Materials $11.8 Por$olio of high margin, innova0on- driven businesses Agricultural Sciences $5.7 Performance Materials $14.7 Performance Plastics $16.3 Feedstocks & Energy $11.9 Note: All figures represent 2011 pro forma sales, in billions of dollars

7 Feedstocks & Energy Low-Cost Power & Feedstocks Significant Scale & Reach Strategic Partnerships World s largest and most experienced ethylene, chlorine, caustic soda and purified ethylene oxide producer Leading consumer and producer of propylene Essential feedstocks for downstream specialties Cost-advantaged energy Global feedstock flexibility creates sustainable competitive advantage Value-added renewable energy solutions for specialties By-product recovery and re-use provides cost advantage Right-sized manufacturing footprint to match downstream demand Strong complement of strategic JV partnerships for growth 7 Sales Growth Rate: GDP x 1 Normalized EBITDA Margin: 8 12% 7

8 Accelerating Dow s Innovation Agenda Dow.com

9 Ventures & Business Development Identifies / analyzes new technologies and quantifies new market opportunities for Dow Serves as an innovation pipeline to supply Dow with a flow of new concepts for evaluation Seeks interaction with emerging technology sources, focusing on developing strategic relationships Staff includes technical, commercial, and financial analysts Uses Technology Scouting group to identify, interact with emerging technology-based opportunities

10 Research & Development Our growth has been built on a 100 year-history in R&D Dow is developing new technologies and methods, including breakthrough technologies for existing processes, concentrating on over 500 major projects Dow practices the fundamentals of R&D deep expertise in analytical science, biotechnology, catalysis, ceramics, materials science, polymer science, separation science and high throughput research We employ more than 6,000 people dedicated to R&D with specialized skills and experience In 2008, one-third of Dow s sales were from products introduced in the past five years With the acquisition of Rohm and Haas, Dow has one of the largest R&D investment programs in the industry with combined spending of more than $1.6B for

11 Alignment & Collaboration Venture Capital V&BD Licensing Responsibility Accelerate Dow s new business growth through investing in high growth potential, private companies where Dow is a differentiated, strategic investor Screening Criterion Financial parameters and strategic business objectives Responsibility Cultivate the innovation pipeline and manage a portfolio of technology and business opportunities that position Dow for growth Screening Criterion Value creation and strategic fit with Dow Responsibility Provide leadership, management and expertise in the transfer of intellectual assets and technology inside and outside of Dow Screening Criterion Financial parameters IP and Freedom to Operate Cultivating the innovation pipeline and managing a portfolio of technology and business opportunities that position Dow for growth 7/13/11

12 Research & Development What we do Enable business growth through the use of fundamental & applied research Product Research Process Research Application Development Invent new molecules and materials Invent new processes and catalyst technologies Process Scale up Understand customers needs in current and emerging markets. Develop new applications & markets for Dow products. Drive customer intimacy 12

13 Dow R&D Structure 80% is Business R&D 20% is Core/Unallocated R&D Long-term and cross-business projects Dow Corporate Venturing Capabilities Analytical Sciences Engineering & Process Science Formulation Science Organics, Polymers & Organometallics Inorganic Materials and Heterogeneous Catalysis Materials Science and Engineering Technologies Materials Engineering Center High Throughput Research External Research Information Research 13

14 Dow R&D Sites Agro Sciences, Indianapolis, IN Spring Collegeville, House, PA PA (Greater Philadelphia) Freeport, TX (Greater Houston) Shanghai, China B1470 B

15 Megatrends: The Focus of Our Market-Driven Strategy AGRICULTURAL SOLUTIONS ENERGY SOLUTIONS Agriculture Functional Foods Alternative Energy & Feedstocks Energy Production & Efficiency Healthcare Energy Storage CONSUMER & LIFESTYLE SOLUTIONS TRANSPORTATION & INFRASTRUCTURE SOLUTIONS Electronics & Communications Construction Home & Personal Care Water Appliances Automotive 15

16 Megatrends: The Focus of Our Market-Driven Strategy AGRICULTURAL SOLUTIONS ENERGY SOLUTIONS Population increases will drive demand for diverse diets Seeds & Traits sector expected to increase 7% Anticipate 4% growth in crop protection industry >$2 trillion clean-tech addressable market by 2020 Solar and wind energy expected to grow double-digits Energy storage devices will also drive growth CONSUMER & LIFESTYLE SOLUTIONS TRANSPORTATION & INFRASTRUCTURE SOLUTIONS Double-digit growth rates for electronics over the medium-term Anticipate retail sales growth rate >2.5% in 2012 Emerging economies will show strongest gains Double-digit growth for transportation in top 15 countries Investment in aging infrastructure networks Growing populations seek sustainable water solutions 16

17 Dow s Four Pillars of Sustainability Smart Solutions For Today Innovations For Tomorrow Responsible Operations Partners For Change Our technologies enable our customers, and their customers, to develop products and services. We contribute to the sustainability of society and our planet by developing innovative technologies for current and future markets. Our infrastructure has a positive impact on our company, our communities and ourselves; our operations are a model for others, wherever we operate. We are leaders in advancing all aspects of sustainability, openly collaborating with customers, suppliers, communities, civil society and governments. 17

18 Recognitions for Sustainability Seven Presidential Green Chemistry Awards more than any other company! Named Eleven Times China s Most Innovative Corporation Award for sustainable innovation of corporate ecosystem, CEO CIO Magazine and the Research Center for Technological Innovation" 2010 Robert W. Campbell Award and 2012 Green Cross for Safety Medal #7 on Corporate Knights 2012 Clean Capitalism Ranking A+ rating on Annual GRI Report - Four Consecutive Years 18 18

19 New Chemistry Through Collaboration Our Methodology We are constantly scouting the world for strategically enabling technologies and opportunities to drive Dow s growth strategies. We serve as a collaborative catalyst for Dow businesses. We incubate promising business opportunities by creating the necessary conditions to cultivate business growth opportunities. We commercialize and then integrate growth options into existing or new operating businesses.

20 Collaboration With Powerful Results 7/13/11

21 DOW POWERHOUSE Roof Shingles Description Building integrated photovoltaic (BIPV) design combines roofing protection and power generation in one product. Sustainability Profile Aesthetically pleasing and neighborhood- friendly, designed for asphalt rooftops Installed by a roofer along with standard asphalt roofing materials which eliminates additional steps and costs Interconnected system design allows for a single power connection Launched in October 2009, the POWERHOUSE Solar Shingle is commercially available today from selected professional roofing providers. TIME Magazine 50 Best Inventions of AWARD WINNER GLOBE Foundation Environmental Excellence in Emerging Technology 21 21

22 AIRSTONE Systems for Wind Energy Description Applying technologies to make wind blades stronger, lighter and easier to produce, AIRSTONE Systems for Wind Energy is an innovative growth catalyst for alternative energy solutions. Sustainability Profile AIRSTONE Systems enable wind blades to achieve the same strength with less weight than polyester-based composites Multiple product grades allow customers to tailor their final product based on specific market and environmental conditions Proprietary technologies help manufacturers improve cycle time and make longer blades increasing energy production 22

23 Gluten Replacement Description Foods containing METHOCEL gluten replacement taste, feel and look great, allowing consumers to improve and satisfy their dietary needs. Sustainability Profile Dietary needs satisfied without compromise METHOCEL gluten replacement binds water in bread, pasta and beyond, resulting in better taste and enduring moistness Farewell to flat and stodgy or dry and tasteless gluten-free food options Peace of mind: plant-based, not animal-based Allows food manufacturers to easily expand into this growing health category 23

24 Dow Water & Process Solutions Reverse Osmosis Ion Exchange Ultrafiltration Arsenic Removal Boron Removal FILMTEC Reverse Osmosis Membrane Polyamide Polysulfone Polyester web Dow s technology treats over 9 billions gallons of water every day 24 24

25 Olefin Block Copolymers One-pot synthesis of designer olefin copolymers From Science article to commercialization in the same calendar year 2009 R&D100 Award Winner for Materials 25 25

26 Plastics to Energy Description Dow successfully demonstrated a pilot test measuring how plastic that has been reused and recycled to the full extent possible can be used as fuel for an ultimate end-of-life option, instead of going to a landfill for disposal. Sustainability Profile 96 percent of available energy was recovered Energy recovered was equivalent to 11.1 million BTU s of natural gas The recycle-to-energy recovery trial provided concept validation for submission and approval of one of several energy efficiency projects chosen to receive Dow s energy intensity improvement funding 26

27 What We need? Talented and highly motivated PhD level professionals Chemical Engineers Chemists Material Scientists Other disciplines College of Chemistry Recruiter Pete Nickias Materials Science Recruiter George Jacob 27

28 Thank You! 28